Dearness allowance increased for 21 lakh workers in Madhya Pradesh

The Madhya Pradesh Labour Department has increased the dearness allowance (DA) of 21 lakh workers by ₹50 per month. The revised DA is effective from October 1, 2024, based on a 2-point increase in the average consumer price index from January to June 2024.

This decision comes after the Indore Bench of the High Court ruled on a petition challenging the minimum wage of workers. Following the verdict, the Labour Department has issued an order to ensure the revised wages are paid from April 2024.

Increased DA for workers

In view of rising inflation and the increasing cost of living, the state government has raised the DA rates. Workers earning minimum wages will now receive ₹2,275 per month (₹2,225 + ₹50 increase) from October 1, 2024, to March 31, 2025. This amounts to ₹87.50 per day and will benefit workers across 67 scheduled industries.

The government has also released a sector-wise and category-wise wage chart detailing the revised minimum wages for different industries.

What is Dearness Allowance?

Dearness Allowance (DA) is a special payment given to government employees and pensioners to help them deal with the rising cost of living. Prices of essential goods and services keep increasing due to inflation, making it harder for people to manage their daily expenses. To reduce this burden, the government provides DA as an extra amount along with their salary or pension.

The amount of DA is calculated as a percentage of the employee’s basic salary. The government reviews and adjusts this percentage from time to time based on inflation rates. This ensures that employees and pensioners do not lose their purchasing power and can afford essential needs like food, transport, and healthcare.

Minimum wages for workers

Agricultural workers earn ₹9,670 per month, while government department workers receive ₹11,850 per month.

However, the revised wages have not yet been implemented in the textile, apparel, and footwear industries. The government is expected to announce a new wage structure for these sectors soon. Around 4 lakh employees are currently employed in these industries.

The decision aims to support workers amid inflation and ensure fair wages, benefiting laborers across various sectors in Madhya Pradesh.

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